New regulation for individual pension contracts

It was stated that the circular published in the Official Gazette was issued to determine the principles and procedures regarding the ability of participants in the individual pension system to assign all or part of their receivables arising from individual pension contracts, excluding state contributions, through an assignment of receivables agreement.

The circular noted that participants may assign their receivables arising from their contracts, excluding state contributions, to banks through an assignment of receivables agreement.

The circular, which details all processes related to the assignment of receivables, also provided information regarding contracts that are not subject to such transfers.

The circular includes the following statement: "In determining the amount subject to the assignment of receivables, the deduction revenues that companies can collect through deductions from the savings in the contract throughout the loan maturity period are taken into account. The amount to be transferred by the bank cannot exceed 20 percent of the loan amount, in order to compensate for potential value losses in the assignment of receivables fund and differences that may occur in the fund unit price until the transition of savings in the contract from existing pension investment funds to the assignment of receivables fund is completed."

The circular, which consists of a total of 8 articles, includes the sections: "Purpose and Scope," "Basis," "Definitions," "Assignment of Receivables Process," "Contracts and Receivable Amounts Subject to Assignment," "Other Matters Regarding the Assignment of Receivables," "Enforcement," and "Execution."